Shulou(Shulou.com)11/24 Report--

In recent days, Weimar frequently rushed to hot search, first was acquired by APOLLO is expected to backdoor listing, then Weima CEO Shen Hui revealed to the outside world by video lines to "live like an animal", and recently announced that the prices of many of its models have risen, and the long-silent Weimar has returned to the public's field of vision.

When the reinforcements are about to be listed backdoor on January 12, official account issued a message that Apollo Travel has reached a conditional sale and purchase agreement with Weima Group, and proposed that the total amount of the placing shares will be about 3.918 billion Hong Kong dollars, and the proposed temporary financing is about 720 million yuan. At the same time, Weimar shareholders have pledged HK $1.5 billion in standing financing.

Earlier, Apollo announced on the Hong Kong Stock Exchange that its wholly-owned subsidiary had entered into an acquisition agreement with Weima Holdings Limited to acquire the entire issued share capital of its wholly-owned subsidiary WM Motor Global Investment Limited for US $2.023 billion, which would be settled by allocating and issuing 28.8 billion consideration shares at the issue price of HK $0.55 per share.

According to the announcement, the company intends to use about 20% of the net proceeds from the placement to repay part of the temporary financing and other existing loans at that time, and about 70% of the net proceeds. It will be used to further develop its business of designing, developing, manufacturing and selling high-performance top supercar and smart electric passenger cars, as well as providing travel technology solutions, and about 10% of the net proceeds will be used for general working capital purposes of the enlarged group.

In addition, according to the Financial Associated Press, Weima submitted its A1 prospectus on May 31, 2022 and completed 3-4 rounds of responses to questions on the Stock Exchange. It is optimistically estimated that Weimar is likely to complete the listing of Hong Kong shares in the second quarter of this year.

However, compared with the 2021 valuation of $5.7 billion, the Apollo purchase of Weimar is valued at $2.023 billion, meaning the valuation of Weimar is 56 per cent lower than before.

According to public information, Apollo Wisdom Travel Group Co., Ltd. is a Hong Kong listed company with two pillars of Apollo Automotive and Apollo advanced technology to conduct business. In addition, data show that Weima Automobile Holdings Co., Ltd. previously held a 23.66% stake in Apollo Wisdom Travel Group Co., Ltd., making it the largest shareholder of the company.

On the 12th, Shen Hui, CEO of Weimar, posted a video on his Weibo, quoting a film and television clip: "…" Live like an animal. "it may also express that the first task of Weimar right now is to live, because only by living can we have a chance.

Spontaneous Combustion and "Power Lock" Weima Automobile was founded in 2015, and its first mass production model, EX5, was officially unveiled in December 2017. it was one of the first new power brands to enter the new energy vehicle market in China, and was in the first echelon with Wei Xiaoli at that time.

Data show that in 2019, Weima reached an annual sales volume of 16876 vehicles, ranking second in the sales of new car-building forces, attracting investment from a number of leading enterprises, including Baidu and SAIC, with a total financing amount of more than 35 billion yuan.

However, by 2021, Weima frequently occurred spontaneous combustion incidents, mainly concentrated in the EX5 and EX6 models. The vehicle recall was subsequently carried out by Weimar, but the solution was to "lock up" the battery capacity of the vehicle, which greatly shortened the mileage of the vehicle, thus causing dissatisfaction among car owners, and jointly sent a lawyer's letter to Weimar to safeguard their rights.

It was then that Weimar's sales fell sharply and disappeared from the sales list by 2022. According to the Federation of passengers, the cumulative sales of Weima cars in 2022 were only 29450, down 33.3% from the same period last year. Among them, Weimar E5 sales of 18763 vehicles, Weima EX5 sales of 4317 vehicles, Weima W6 sales of 6364 vehicles, Weima EX6 sales of only 6 vehicles.

In fact, the operating condition of Weima Motor has been very bad in recent years. According to the prospectus issued by Weima in September 2022, Weima's income from 2019 to 2021 was 1.762 billion yuan, 2.671 billion yuan and 4.743 billion yuan, respectively. The losses for the year reached 4.145 billion yuan, 5.084 billion yuan and 8.206 billion yuan respectively, with cumulative losses reaching 174.35 billion yuan in the past three years.

In October 2022, Weimar suffered serious financial problems again. According to interface news, sources close to the company say Weimar is implementing a series of proactive financial policies, including a 50% pay cut for senior executives. According to another media report, some internal employees have revealed that starting from October 2022, Weima Motor will pay 70% of the salaries of grass-roots employees. To be sure, Weimar has recently cut salaries to varying degrees, from executives to grass-roots employees.

Can you return to the first echelon? In the quiet year of 2022, great changes have taken place in the domestic new energy vehicle market, first of all, the rise of independent brands led by BYD. Data show that BYD sold a total of 1.8635 million vehicles in 2022, winning the top spot in sales for the whole year, while GAC's sales of 271000 vehicles also performed well.

Second, the sales of the new power of car building are growing steadily. The first echelon of "Wei Xiaoli" sold more than 100000 vehicles in 2022, while the second echelon of Nezha and zero-running cars broke out in 2022, of which Naga surpassed "Wei Xiaoli" with a score of 152000 to achieve a counterattack.

In contrast, Weima Motors, not only poor sales in 2022, but also did not launch any new models, only released two modified models of the old model E.5, and there was no sign of the Weima M7, which was originally planned to be launched in the second half of 2022. Weima Automobile is an indisputable fact.

Earlier today, Weimar announced price adjustments for W6, EX5-Z, E.5 and other models on January 1, 2023. After the adjustment, the price after the comprehensive subsidy will increase by 15000 yuan to 25000 yuan. The price adjustment scheme will take effect 00:00 on January 1, 2023, and users who have completed the deposit payment before that time will not be affected by this price adjustment.

At present, Weima cars are on sale for EX5, EX5-Z, E.5 and W6, with a price range of 175800 yuan to 284800 yuan after the price increase. In this price range, BYD, Ean, Xiaopeng, Zero run, Nezha and other car companies have firmly occupied most of the market space, with the current production power of Weima models, it can be said that there is no competitive advantage.

And Apollo Travel seems to have no intention of doing its best to revive the Weimar brand, because according to Apollo's official website, the company is expanding its product range and plans to launch the luxury smart electric concept car announced in 2022 in China and sell it globally, while Weima's two domestic production bases can be used for production.

It is reported that the two sides will launch three levels of products, from the Apollo brand supercar, which is priced at more than 2 million US dollars, to the new high-end smart electric car brand Atrex, which costs 600000-800000 yuan, and the Weimar brand model, which costs about 150000-350000 yuan. The new brand Atrex will also be officially launched soon.

In the face of more fierce competition in 2023, the temporary survival of Weimar can usher in the bottom rebound, can only say: difficult, is really difficult.

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